Wednesday, November 2, 2011

The delinquency rate for U.S. commercial real estate loans in commercial mortgage-backed securities rose last month - hitting its second-highest level in recorded history, according to Trepp, a real estate research firm.

In October, 9.77 percent of CMBS loans were delinquent 30 days or more or in foreclosure, up from 8.58 percent a year ago, Trepp says.

Charlotte-area delinquency rates are due to be released Thursday.

Commercial mortgage-backed securities are pools of real estate loans that have been packaged together and sold to investors. Packaged loans account for 20 percent of the nation's commercial real estate loans.

Industrial properties saw the biggest increase in delinquencies, which rose to 11.59 percent from 6.27 percent during the past year. Office property delinquency rates jumped to 8.95 percent from 6.68 percent a year ago. Multifamily property delinquency rates rose to 16.73 percent from 14.63 percent; delinquencies for retail properties inched up to 7.61 percent from 7.17 percent; and the delinquency rate for hotel properties fell to 14.12 percent from 14.92 percent last year.

Business loan is probably one of the most difficult achievements. This is especially true given the current characteristics of our economic system and continuing regulating changes for credit. As opposed to the earlier part of the past several years, financial institutions and organizations in the awaken of the results from the real estate industry have increased credit expectations across the board. As we have mentioned in previous articles, while rates have continued to be low, financial institutions and organizations have still put considerable constraints on the loans that they allow.

Ely Portillo

Ely Portillo

About this blog

Ely Portillo covers economic development for the Observer, writing about who's building what in a city that seems to be sprouting new apartment and office towers on every corner. He also writes about Charlotte's airport, a major hub that's also undergoing a huge growth spurt. A transplant from Maryland, he's been reporting on his adopted hometown for more than five years. If you have a tip or story idea to share, you can contact him by email or give him a call at 704-358-5041. For the latest news, follow him on Twitter @ESPortillo.